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DECISION No

DECISION No. 51/2001/QD-TTg OF APRIL 11, 2001 RATIFYING THE 2001-2005 FIVE-YEAR PLAN ON THE DEVELOPMENT OF VIETNAM�S CHEMICAL INDUSTRY

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposal of the Ministry of Industry (in Report No. 4871/TTr-KHDT of December 22, 2000) and proceeding from the opinions of the ministries of Planning and Investment (in Official Dispatch No.898-BKH/CN of February 19, 2001), Finance (in Official Dispatch No.1176-TC/TCDN of February 16, 2001), Agriculture and Rural Development (in Official Dispatch No.298/BNN/KH of February 7, 2001), and Science, Technology and Environment (in Official Dispatch No.348/BKHCNMT-CN of February 12, 2001),

DECIDES:

Article 1.- To ratify the 2001-2005 five-year plan on the development of Vietnam�s chemical industry with the following principal contents:

I. THE PLAN�S OBJECTIVES

1. To step by step build the chemical industry with a rational and modern structure, to form industrial parks and large-scale chemical production groups with advanced technologies, so as to efficiently use the domestic resources, meet the market demands and substitute for imports, then proceeding to export products to foreign markets.

2. To continue seeking for capital sources and investment forms in order to execute new investment projects for the production of: urea nitrogenous fertilizer; diammonium phosphate (DAP); suds, caustic soda; automobile and tractor tires and inner tubes and a number of products of high value.

3. To rapidly make intensive investments in and renewal of existing technologies and equipment, so as to turn out products with great domestic demands, with materials and raw materials advantage and with competitiveness, such as: processed phosphorous fertilizer; NPK (nitrogenous-phosphorous-potassium) mixed fertilizer; automobile, bicycle and motorbike tires and inner tubes; phosphoric acid (H3PO4); tripolyphosphate; monosodium hydroxide (caustic soda NaOH); sulfuric acid (H2SO4); light powder; accumulators.

4. To achieve an average annual growth rate of over 15% for the five-year period.

II. THE ORIENTATIONS AND TASKS OF THE 2001-2005 FIVE-YEAR PLAN

1. Regarding fertilizer:

a/ Phosphorous fertilizer:

To make intensive investment in production expansion so as to raise the capacity of Lam Thao superphosphate and chemical factory, Long Thanh superphosphate factory and two calcined phosphate factories (Van Dien and Ninh Binh). To speed up the investment preparation in order to start as soon as possible the construction of a diammonium phosphate (DAP) factory; and to study the possibility of building a super-phosphorous fertilizer plant in Lao Cai province. To complete the first stage, then proceed with the second stage of the project to raise the apatite ore- exploiting and - sorting capacity to 760,000 tons/year.

b/ Urea nitrogenous fertilizer:

To complete on schedule the project for technical renovation of Ha Bac nitrogenous fertilizer factory. The Vietnam Chemical Corporation shall coordinate with the Vietnam Oil and Gas Corporation in constructing two new factories for producing nitrogenous fertilizer from gas in Phu My and Ca Mau; to actively proceed with the project on a factory producing nitrogenous fertilizer from coal.

c/ NPK mixed fertilizer:

To develop the production of NPK mixed fertilizer in proportion to the demand therefor and ensure the rational arrangement of NPK mixed fertilizer factories according to territorial areas and plant varieties, with importance attached to the renewal of technologies and equipment, raising of quality and diversification of categories of NPK mixed fertilizer to meet the domestic demand.

d/ To boost the production of bio-chemical organic fertilizers rich in nutrients.

2. Regarding rubber products:

To renew technologies and equipment, step up the investment in expansion of production and raising of quality of automobile, bicycle and motorbike tires and inner tubes, and prepare conditions for the construction of an automobile tire and inner tube factory with a capacity of 2 - 3 million sets/year by 2005. To research into and develop the production of technical rubber products.

3. Regarding base chemicals:

Besides boosting the production of traditional base chemicals (sulfuric acid, phosphoric acid, hydrochloric acid, tripolyphosphate, light powder,...) to meet the market demands, it is necessary to study and prepare for investment in large-scale production of suds and caustic soda in service of development of light industry, construction materials industry, metallurgy and oil refinery.

4. Regarding petrochemistry and other chemicals:

a/ To maintain and promote to the utmost the capacity of invested factories producing such petrochemical products as: dioctyl phthalate (DOP), polyvinylchloride (PVC); to take initiative in coordinating with the petroleum industry and other relevant branches in formulating projects for investment in a number of new petrochemical products such as polystyrel (PS), polypropylene (PP), polyethylene terephthalate (PET), polyamid (PA); polyester fiber (PES); vinyl chloride monomer (VCM) to be used as raw materials for PVC production. To develop raw materials for production of adhesives in service of the program on production of 1 million cubic meters of industrial wood. To consider the petrochemistry an important new orientation in the strategy for development of the chemical industry in the coming period.

b/ Regarding accumulators, batteries, chemical paints, washing and cleansing substances, plant protection chemicals, etc., most of investments to be made shall be intensive ones in renewal of technologies and raising of products quality in order to fully meet the domestic demand and be exported step by step.

By 2005, to achieve the production targets of a number of main products: 1,100,000 tons of superphosphate, 600,000 tons of calcined phosphate, 330,000 tons of diammonium phosphate (DAP), equivalent to 900,000 tons of superphosphate/year; 1,420,000 urea nitrogenous fertilizer (for the entire branch); 1,800,000 tons of NPK mixed fertilizer; 700,000 tons of sulfuric acid; 130,000 tons of pure monosodium hydroxide (NaOH); 1,200,000 automobile tire sets; 800,000 kwh of accumulator output.

III. ON DEVELOPMENT INVESTMENTS FOR THE IMPLEMENTATION OF THE PLAN

1. The total capital amount required by the entire branch for the 2001-2005 period shall be around VND 29,000 billion, of which VND 18,000 billion shall come from the Vietnam Chemical Corporation (including VND 8,500 billion of foreign loans or domestic commercial loans, while the rest shall be preferential loans, self-supplemented capital and from other sources).

2. The Ministry of Industry shall coordinate with concerned ministries, branches and localities in submitting to the Prime Minister for approval each specific project according to their competence, together with proposals on the creation of investment capital sources, policies for mobilization and use of capital of each project, as well as policies to support the chemical production and ensure the sustainable development of Vietnam�s chemical industry.

Article 2.- Implementation management and organization:

1. The Ministry of Industry shall have to manage and direct the implementation of the 2001-2005 five-year plan on the development of Vietnam�s chemical industry and perform the following tasks:

- To coordinate with the Ministry of Planning and Investment, the Ministry of Construction, the Ministry of Defense, the People�s Committees of the concerned provinces and centrally-run cities and the Vietnam Chemical Corporation in working out the investment portfolio, investment scale and locations of new projects in each period;

- To submit to the Prime Minister for approval the readjustments or supplements to the plan after consulting the concerned ministries, branches and localities;

- To study and formulate mechanisms and policies to create investment capital sources, use domestic raw materials and materials, renew technical equipment and facilities and enhance the managerial capability of the chemical industry, then submit them to the Prime Minister for approval.

2. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Industry and the State Bank of Vietnam shall arrange and seek for capital sources at home and abroad, including ODA and FDI preferential loans, to satisfy the investment demand of the chemical industry.

Article 3.- The Vietnam Chemical Corporation shall have to implement the plan. The ministries, branches and People�s Committees of the provinces and centrally-run cities shall, according to their respective functions and tasks, have to coordinate with and help one another in the course of plan implementation, with attention being paid to the assurance of consistency and homogeneity between the Vietnam Chemical Corporation�s plan and the development plans of ministries, branches and localities.

Article 4.- The Vietnam Oil and Gas Corporation shall have to coordinate with the Vietnam Chemical Corporation in finalizing the development plan and specialized implementation solutions for production of nitrogenous fertilizer and petrochemistry along the approved target orientations.

Article 5.- This Decision takes effect 15 days after its promulgation.

Article 6.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities, the Chairman of the Management Board and the General Director of the Development Assistance Fund, the managing board chairmen and general directors of the Vietnam Chemical Corporation and the Vietnam Oil and Gas Corporation shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister
NGUYEN TAN DUNG